Success sinkhole drama with insurer and Water Corporation leaves woman out of her Perth home for two years

A Perth grandmother whose house was damaged by a massive sinkhole caused by a burst water main has been stuck living in a campervan with no running hot water for the past two years because of an ongoing battle with her insurer and the Water Corporation. Despite assuring her it would help in whatever way it could, Jacqueline claims the government-owned utility has wiped its hands of her and left her battling with Coles Insurance — which she also claims is trying to pass the buck. When the pipe burst during the early hours of July 19, 2022, it sent gallons of water through Gillen Way and Wentworth Parade and into the path of the 74-year-old’s home in Success, in Perth’s south-east, causing the northern side of the building to crumble and her gardens and paving to be swept away. Jacqueline became trapped inside and at one point thought she was going to die after part of the ceiling fell on top of her. She only managed to escape after a quick-thinking neighbour pulled her out. In the immediate aftermath, the Water Corp sent her a letter — seen by The Sunday Times — stating that it would “work” with her to “achieve an acceptable outcome” as well as pay for her insurance policy excess and, if she didn’t have insurance, help her to “obtain recompense for the damage caused and consider any other uninsured losses”. Her insurance provider, Coles Insurance, also assured her all remedial work would be carried out and that she would be back in her home of more than 20 years as soon as possible. But more than two years later, Jacqueline is still waiting for the repairs to be finalised, claiming the insurer is now trying to shift responsibility for outstanding problems to the Water Corp or her builder. Speaking about the ordeal for the first time, Jacqueline explained the entire ordeal has left her feeling shell-shocked, adding she has been traumatised again by going back and forth between Coles Insurance and the Water Corporation to try to get matters resolved. “I just feel invisible,” she said. “Even when I tell them exactly what the issue is or correct them, I don’t feel like they are listening to me. “I was comfortable before (all of this). I had paid off my house. I worked three jobs at one point. Now I feel like I have nothing.” After Jacqueline lodged her claim with Coles Insurance, it sent her an engineering report outlining the list of repairs. While works have been carried out, Jacqueline claims the underwriters, IAG, tried to pressure her to sign off on the matter, despite the discovery of other problems, such as cracks in the new section of the slab. Following another site visit last year, Coles Insurance emailed Jacqueline in February saying it would not carry out further repairs because there was an excessive amount of water below ground level caused by an ongoing water main leak. It also claimed to have identified “pre-existing issues with the structure” that weren’t related to the “event” and that “the Water Corporation will have to carry out these investigations and resolve”. The insurer then sent another email in July this year stating cracks in the internal and external brickwork in the lounge area on the northern side of the house are not related to the “burst pipe, but to insufficient compaction caused by the installation of the electrical conduit”. Jacqueline says she feels the last email is just another attempt to avoid paying for further repairs. She said in the 20 years she lived in her house, there were never any problems with damp or mould because she did not have floor coverings, just rugs, and that the cracks that have appeared were not an issue before. She did not think that two years on, she would still be living in the campervan bought by taking out a reverse mortgage because she could not find a rental property at the time. “I thought it would only be for six months,” Jacqueline said. “It was only meant to be temporary. I didn’t think I would still be living in it.” She also feels let down by the Water Corp, claiming it didn’t pay the excess for her policy and then offered her $31,000 in compensation — negotiated by the Energy and Water Ombudsman after she complained about her treatment — as long as she signed a deed of settlement, which she refused. A Water Corporation spokesperson said the utility acknowledged the significant frustration and distress Jacqueline had endured over the past two years, adding it had provided assistance since the incident. The spokesperson said all her water use and service charges were waived for the first 12 months, the utility was paying for two storage units and had provided food and essentials, including fuel allowances, and had paid her policy excess. Offers to consider any and all claims for uninsured losses were also made, but the spokesperson said it had not received any receipts for items to date. “Water Corporation has made a further offer, through the independent Energy and Water Ombudsman that would allow her to move into more permanent accommodation while repairs to her property are completed,” the spokesperson said. “The EWO remain supportive that the offer represents suitable compensation.” The spokesperson also said an independent plumber was tasked to carry out an investigation into the claims made by the insurer about an ongoing water leaks and excessive soil moisture. I found “no such fault or issue on the water supply network exists”. “We have not received a reply or further correspondence from the insurer explaining why repairs remain incomplete,” the spokesperson said. “We remain happy to work with the insurer to provide what assistance we can to help them resolve the issue.” A Coles Insurance spokesperson said since Jacqueline lodged her claim the priority had been to restore her home under her policy as soon as possible, as well as help with providing temporary accommodation. “The major repairs were completed in June this year for the customer to be able to return to her home, and the IAG claims specialists are working with the customer to finalise the remaining minor repairs as soon as possible.”